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Section 20 of the SARFAESI Acts, Establishment of the Central Registry

Jan 10 2025
  1. According to the provision, the Central Government has the authority to establish a registry known as the Central Registry through a notification, specifying the commencement date.
  2. This registry, equipped with its seal, serves the purpose of registering transactions related to securitization, the reconstruction of financial assets, and the creation of security interests under the SARFAESI Act.
  3. The principal workplace of the principal Registry might be located at a delegated area determined via the critical government.
  4. Moreover, to facilitate the registration of transactions mentioned in subsection (1), department places of work can be installed at locations deemed suitable by the crucial authorities.
  5. The territorial limits within which an office of the Central Registry can operate may be defined by the Central Government through a notification.
  6. it's crucial to note that the provisions mentioned inside the SARFAESI Act concerning the vital Registry are supplementary and do not override any provisions inside the Registration Act, 1908, the Organizations Act, 1956, the Service Provider Delivery Act, 1958, the Patents Act, 1970, the Motor cars Act, 1988, the Designs Act, 2000, or any other regulation requiring the registration of expenses.
  7. Furthermore, these provisions no longer affect the priority or validity of fees underneath the Acts or legal guidelines.

 

Provision Details of Section 20

  • Text and legal interpretation of Section 20
  • Key definitions and terms
  • Rights and duties assigned under this section

3. Objective and Scope

  • Purpose of Section 20
  • Situations or conditions where it applies
  • Limitations and scope within the Act’s framework

4. Procedural Aspects

  • Step-by-step procedures for compliance
  • Required documentation and notices
  • Timeline and process flow for stakeholders

5. Rights of Secured Creditors Under Section 20

  • Role of creditors in initiating action
  • Conditions and rights for seizure, sale, or lease of assets
  • Obligations towards debtors and third parties

6. Duties and Responsibilities of Asset Reconstruction Companies (ARCs)

  • Specific duties of ARCs when acting under Section 20
  • Requirements for asset acquisition and handling

7. Legal Protections and Liabilities

  • Protections for secured creditors or ARCs in enforcing this section
  • Legal safeguards for borrowers and third parties
  • Consequences for non-compliance

8. Judicial Precedents and Case Studies

  • Landmark cases relevant to Section 20
  • Key judgments that have impacted its interpretation
  • Case studies illustrating its application in asset recovery

9. Challenges and Practical Issues

  • Practical difficulties faced in enforcing Section 20
  • Common disputes and conflict resolution
  • Evolving issues and recent developments

10. Amendments and Updates

  • Historical amendments impacting Section 20
  • Recent regulatory updates and government notices
  • Impact of updates on stakeholders

11. Role of Regulatory Bodies

  • Involvement of the Reserve Bank of India (RBI)
  • Role of other regulatory authorities in monitoring compliance

12. Compliance and Documentation

  • Key documents required for invoking Section 20
  • Filing procedures, formats, and sample templates
  • Record-keeping requirements and audit aspects

13. Penalties and Appeals

  • Penalties for contravening Section 20
  • Rights to appeal and procedures for challenging actions
  • Steps for review and redressal mechanisms

14. Comparative Analysis with Other Sections

  • Differences between Section 20 and similar sections (e.g., Section 14)
  • Situational analysis on when to invoke Section 20 vs. other provisions